This office has recently completed an audit of AFGE, LU 1104 under the Compliance
Audit Program (CAP) to determine your organization's compliance with the provisions
of the Civil Service Reform Act of 1978 (CSRA), 5 U.S.C. 7120, and the Department's
regulations, 29 CFR 458. As discussed during the exit interview with you on January
31,2008, the following problems were disclosed during the CAP. The matters listed
below are not an exhaustive list of all possible problem areas since the audit conducted
was limited in scope.
Reporting Violation

Pursuant to 29 C.F.R., Section 458.3, the reporting requirement under 29 C.F.R. Section
403.2 (see Section 201(b) of the Labor-Management Reporting and Disclosure Act
(LMRDA)) is made applicable to labor organizations subject to the requirements of the
CSRA. This provision requires labor organizations to file annual financial reports that
accurately disclose their financial condition and operations. The audit disclosed a
violation of this requirement. The Labor Organization Annual Report (Form LM-4)
filed by Local 1104 for fiscal year ending December 31,2007, was deficient in that Local
1104 failed to file its most recent bylaws.

Failure to File Bylaws

Pursuant to 29 C.F.R. Section 458.3, the requirement under 29 C.F.R. Section 402.4
implementing LMRDA Section 201(a) is made applicable to labor organizations subject
to the requirements of the CSRA. This provision requires labor organizations to file
copies of any revised constitution and bylaws when it files its annual financial report.
The audit disclosed a violation of this requirement. Local 1104 amended its constitution
and bylaws in 2006, but did not file the required copies with its LM report for that year.

Local 1104 has now filed a copy of its constitution and bylaws.

Other Issues

Dual Signatures

During the audit, you stated that you are typically the only signer on the union's
checks. Your union's bylaws require that all checks be signed by the president and
treasurer. The two signature requirement is an effective internal control of union funds.
OLMS recommends that Local 1104 review these procedures to improve internal control
of union funds.

I want to extend my personal appreciation to AFGE, LU 1104 for the cooperation and
courtesy extended during this compliance audit. I strongly recommend that you make
sure this letter and the compliance assistance materials provided to you are passed on
to future officers. If we can provide any additional assistance, please do not hesitate to
call.

Sincerely,
R. Bruce Edgington
District Director
cc: John Clark, President